Sunday, October 28, 2012

The alternate count in the last update is now the primary count. Wave (4) appears to be complete following another motive wave lower, an ending diagonal, that began Monday when the last update was posted.

Support should be found at the lows reached this week. If this does not hold, a more major top is likely already complete at the last recovery higher or one of the swing highs following it.

Even though wave (ii) looks like a flat, a complete ending diagonal wave [c] lower looks like the best estimate of recent action. This is a very complex set of waves that could be an upward correction, but the zigzag down on Monday is hard to incorporate into a count like this. A clear impulse wave higher Friday appears to be initiating an upward rally.

The alternate count in the last update is now the primary count. Wave (4) appears to be complete following another motive wave lower, an ending diagonal, that began Monday when the last update was posted.

Support should be found at the lows reached this week. If this does not hold, a more major top is likely already complete at the last recovery higher or one of the swing highs following it.

Even though wave (ii) looks like a flat, a complete ending diagonal wave [c] lower looks like the best estimate of recent action. This is a very complex set of waves that could be an upward correction, but the zigzag down on Monday is hard to incorporate into a count like this. A clear impulse wave higher Friday appears to be initiating an upward rally.

My trading philosophy is 95% based on my own Elliott Wave analysis of the S&P 500. I try to keep my analysis and trading as simple as possible and do not use trend lines, channels, or definite retracement, price, or time targets. To me, inspecting the proportionality and symmetry of a market's price structure is the key to mastering the principle; it is through this that low-risk, high-reward trading opportunities are found.

Because they are the only things I look at when trading, the quality of the charts I post on this blog are very important to me. I think you will find my work to be the best Elliott Wave analysis of the S&P 500 on the internet.